(RTO) Rentokil Initial - Ratings and Ratios
Pest Control, Hygiene Services, Specialist Cleaning, Garment Laundry
Description: RTO Rentokil Initial
Rentokil Initial PLC (NYSE:RTO) is a global provider of route-based services, offering a diverse range of solutions including pest control, hygiene services, and specialist cleaning services to various industries. The companys comprehensive portfolio includes services for rodents, flying and crawling insects, and other wildlife management, as well as hygiene products and garment laundering for commercial organizations.
From a business perspective, Rentokil Initials services are essential for maintaining public health and hygiene, particularly in industries such as food processing, healthcare, and hospitality. The companys global footprint, with operations in North America, Europe, the UK, Asia, and other regions, provides a strong foundation for growth. Key Performance Indicators (KPIs) to watch include revenue growth, customer acquisition and retention rates, and the expansion of its service offerings into new markets.
To evaluate Rentokil Initials financial health, we can examine metrics such as Return on Equity (RoE) of 16.74%, indicating a relatively strong return on shareholder equity. The companys Price-to-Earnings (P/E) ratio of 28.02 and Forward P/E of 12.99 suggest that the stock may be undervalued, as the forward P/E is significantly lower than the current P/E. Additionally, the Market Capitalization of $11.7 billion USD indicates a substantial market presence.
From an operational perspective, Rentokil Initials ability to maintain a strong network of routes and provide consistent services across different geographies is crucial. The companys focus on expanding its service offerings, such as specialist cleaning services, can also drive growth. Monitoring KPIs such as route density, customer satisfaction ratings, and employee productivity can provide insights into the companys operational efficiency.
RTO Stock Overview
| Market Cap in USD | 12,930m |
| Sub-Industry | Environmental & Facilities Services |
| IPO / Inception | 2007-07-13 |
RTO Stock Ratings
| Growth Rating | -18.6% |
| Fundamental | 66.6% |
| Dividend Rating | 50.5% |
| Return 12m vs S&P 500 | -14.6% |
| Analyst Rating | 4.0 of 5 |
RTO Dividends
| Dividend Yield 12m | 2.69% |
| Yield on Cost 5y | 1.98% |
| Annual Growth 5y | 21.77% |
| Payout Consistency | 83.0% |
| Payout Ratio | 4.7% |
RTO Growth Ratios
| Growth Correlation 3m | 72.1% |
| Growth Correlation 12m | -16.4% |
| Growth Correlation 5y | -69.8% |
| CAGR 5y | -3.02% |
| CAGR/Max DD 3y | -0.06 |
| CAGR/Mean DD 3y | -0.10 |
| Sharpe Ratio 12m | 0.20 |
| Alpha | 0.02 |
| Beta | 0.609 |
| Volatility | 29.79% |
| Current Volume | 800.4k |
| Average Volume 20d | 586.3k |
| Stop Loss | 24 (-3.1%) |
| Signal | -0.67 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (691.0m TTM) > 0 and > 6% of Revenue (6% = 690.2m TTM) |
| FCFTA 0.06 (>2.0%) and ΔFCFTA 0.52pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 3.30% (prev 5.13%; Δ -1.83pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 1.56b > Net Income 691.0m (YES >=105%, WARN >=100%) |
| Net Debt (3.22b) to EBITDA (1.51b) ratio: 2.13 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.12 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (2.53b) change vs 12m ago 399.8% (target <= -2.0% for YES) |
| Gross Margin 39.02% (prev 22.33%; Δ 16.69pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 91.21% (prev 50.51%; Δ 40.70pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.43 (EBITDA TTM 1.51b / Interest Expense TTM 197.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.55
| (A) 0.03 = (Total Current Assets 3.65b - Total Current Liabilities 3.27b) / Total Assets 14.23b |
| (B) 0.37 = Retained Earnings (Balance) 5.21b / Total Assets 14.23b |
| (C) 0.08 = EBIT TTM 1.07b / Avg Total Assets 12.61b |
| (D) 0.59 = Book Value of Equity 5.25b / Total Liabilities 8.96b |
| Total Rating: 2.55 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.59
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 6.37% = 3.18 |
| 3. FCF Margin 7.01% = 1.75 |
| 4. Debt/Equity 0.92 = 2.09 |
| 5. Debt/Ebitda 3.22 = -2.04 |
| 6. ROIC - WACC (= 3.85)% = 4.82 |
| 7. RoE 15.57% = 1.30 |
| 8. Rev. Trend 70.33% = 5.27 |
| 9. EPS Trend -35.83% = -1.79 |
What is the price of RTO shares?
Over the past week, the price has changed by -2.29%, over one month by +2.61%, over three months by +6.79% and over the past year by +1.23%.
Is Rentokil Initial a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RTO is around 24.52 USD . This means that RTO is currently overvalued and has a potential downside of -1.05%.
Is RTO a buy, sell or hold?
- Strong Buy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the RTO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 29.7 | 19.7% |
| Analysts Target Price | 29.7 | 19.7% |
| ValueRay Target Price | 26.7 | 7.8% |
Last update: 2025-09-13 04:40
RTO Fundamental Data Overview
CCE Cash And Equivalents = 1.69b GBP (last quarter)
P/E Trailing = 40.8095
P/E Forward = 18.5874
P/S = 2.3365
P/B = 2.454
P/EG = 1.6038
Beta = 0.321
Revenue TTM = 11.50b GBP
EBIT TTM = 1.07b GBP
EBITDA TTM = 1.51b GBP
Long Term Debt = 4.18b GBP (from longTermDebt, last quarter)
Short Term Debt = 677.0m GBP (from shortTermDebt, last quarter)
Debt = 4.86b GBP (Calculated: Short Term 677.0m + Long Term 4.18b)
Net Debt = 3.22b GBP (from netDebt column, last fiscal year)
Enterprise Value = 12.67b GBP (9.51b + Debt 4.86b - CCE 1.69b)
Interest Coverage Ratio = 5.43 (Ebit TTM 1.07b / Interest Expense TTM 197.0m)
FCF Yield = 6.37% (FCF TTM 807.0m / Enterprise Value 12.67b)
FCF Margin = 7.01% (FCF TTM 807.0m / Revenue TTM 11.50b)
Net Margin = 6.01% (Net Income TTM 691.0m / Revenue TTM 11.50b)
Gross Margin = 39.02% ((Revenue TTM 11.50b - Cost of Revenue TTM 7.01b) / Revenue TTM)
Tobins Q-Ratio = 2.41 (Enterprise Value 12.67b / Book Value Of Equity 5.25b)
Interest Expense / Debt = 1.98% (Interest Expense 96.0m / Debt 4.86b)
Taxrate = 24.20% (98.0m / 405.0m)
NOPAT = 810.3m (EBIT 1.07b * (1 - 24.20%))
Current Ratio = 1.12 (Total Current Assets 3.65b / Total Current Liabilities 3.27b)
Debt / Equity = 0.92 (Debt 4.86b / last Quarter total Stockholder Equity 5.27b)
Debt / EBITDA = 3.22 (Net Debt 3.22b / EBITDA 1.51b)
Debt / FCF = 6.02 (Debt 4.86b / FCF TTM 807.0m)
Total Stockholder Equity = 4.44b (last 4 quarters mean)
RoA = 4.85% (Net Income 691.0m, Total Assets 14.23b )
RoE = 15.57% (Net Income TTM 691.0m / Total Stockholder Equity 4.44b)
RoCE = 12.41% (Ebit 1.07b / (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 9.83% (NOPAT 810.3m / Invested Capital 8.25b)
WACC = 5.97% (E(9.51b)/V(14.36b) * Re(8.26%)) + (D(4.86b)/V(14.36b) * Rd(1.98%) * (1-Tc(0.24)))
Shares Correlation 3-Years: 71.91 | Cagr: 18.99%
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 80.74% ; FCFE base≈710.8m ; Y1≈876.8m ; Y5≈1.50b
Fair Price DCF = 48.51 (DCF Value 24.40b / Shares Outstanding 502.9m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -35.83 | EPS CAGR: 248.6% | SUE: 2.85 | # QB: 2
Revenue Correlation: 70.33 | Revenue CAGR: 54.50% | SUE: N/A | # QB: None
Additional Sources for RTO Stock
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